HHS awards $90M+ for IT portfolio management, with TANTUS TECHNOLOGIES Inc. as prime contractor

Contract Overview

Contract Amount: $90,191,094 ($90.2M)

Contractor: Tantus Technologies, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2016-04-12

End Date: 2021-05-12

Contract Duration: 1,856 days

Daily Burn Rate: $48.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::OT::IGF PORTFOLIO MANAGEMENT, PROGRAM MANAGEMENT, AND PROJECT MANAGEMENT

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $90.2 million to TANTUS TECHNOLOGIES, INC. for work described as: IGF::OT::IGF PORTFOLIO MANAGEMENT, PROGRAM MANAGEMENT, AND PROJECT MANAGEMENT Key points: 1. Contract focuses on critical IT portfolio, program, and project management services for CMS. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period spans over 4 years, indicating a significant, long-term engagement. 4. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance but can lead to higher costs. 5. The award was a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The contractor, TANTUS TECHNOLOGIES, INC., has a substantial award value, indicating significant experience and capacity.

Value Assessment

Rating: good

The contract value of over $90 million for IT portfolio management services over approximately 4 years appears reasonable given the scope. Benchmarking against similar large-scale IT services contracts within federal agencies suggests this award is within expected ranges for comprehensive program management. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, which can drive value, but also necessitates careful monitoring to ensure costs remain controlled and aligned with achieved outcomes. Without specific performance metrics and award fee payouts, a definitive value-for-money assessment is challenging, but the scale and duration suggest a significant investment in critical IT infrastructure management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. The presence of 3 Delivery Orders suggests that this contract may be an IDIQ vehicle, and this specific order was competed among eligible bidders. A full and open competition generally fosters a competitive environment, which is expected to lead to better pricing and service offerings for the government.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for cost savings through robust price discovery and encourages a wider range of innovative solutions.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and, by extension, the healthcare sector through improved IT management. Services delivered are crucial for the effective management and modernization of CMS's extensive IT portfolio. The geographic impact is primarily within the federal government's IT infrastructure, supporting national healthcare initiatives. Workforce implications include the potential for skilled IT professionals to be engaged in managing and improving critical healthcare IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPAF contract type requires diligent oversight to ensure award fees are justified by performance and do not inflate costs unnecessarily.
The exclusion of sources in the competition type warrants review to ensure it did not unduly limit competition.
The significant contract value necessitates robust performance monitoring and risk management by the agency.

Positive Signals

Awarded under full and open competition, indicating a broad market solicitation.
The contractor, TANTUS TECHNOLOGIES, INC., has secured a substantial contract, suggesting a proven track record in delivering IT services.
The contract duration of over 4 years allows for sustained focus on program objectives and potential for long-term improvements.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT portfolio management, program management, and project management. This is a critical area for large federal agencies like CMS, which manage vast and complex IT systems supporting national healthcare programs. The market for such services is competitive, with numerous firms offering specialized expertise. The award value of over $90 million places it in the category of a significant federal IT services contract, indicative of the scale and importance of CMS's IT operations.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract award. While this contract itself may not have direct small business set-aside provisions, the prime contractor, TANTUS TECHNOLOGIES, INC., may engage small businesses as subcontractors. The extent of subcontracting to small businesses would need further investigation to understand the impact on the small business ecosystem. Without explicit small business goals or reporting, the direct benefit to small businesses from this particular award is unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. As a Cost Plus Award Fee (CPAF) contract, performance monitoring is crucial to determine award fee payouts. The Inspector General for the Department of Health and Human Services (HHS) would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, but detailed performance reports and award fee justifications are typically internal agency documents.

Related Government Programs

IT Portfolio Management Services
Program Management Support
Project Management Services
Computer Systems Design Services
Federal IT Modernization Programs
Healthcare IT Services

Risk Flags

Potential for cost overruns due to CPAF structure
Need for robust performance monitoring over contract duration
Risk of scope creep in evolving IT landscape
Ensuring effective competition despite 'Exclusion of Sources' clause

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $90.2 million to TANTUS TECHNOLOGIES, INC.. IGF::OT::IGF PORTFOLIO MANAGEMENT, PROGRAM MANAGEMENT, AND PROJECT MANAGEMENT

Who is the contractor on this award?

The obligated recipient is TANTUS TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $90.2 million.

What is the period of performance?

Start: 2016-04-12. End: 2021-05-12.

What is the track record of TANTUS TECHNOLOGIES, INC. with federal IT contracts, particularly those of similar size and scope?

TANTUS TECHNOLOGIES, INC. has a notable history of securing federal IT contracts. While specific details on all past performance require deeper database analysis, this award of over $90 million for IT portfolio, program, and project management services indicates a significant capacity and established relationship with agencies like HHS/CMS. Federal procurement data often shows contractors of this size have experience across multiple agencies and contract types. Further review of their contract history would reveal the types of services rendered, past performance ratings, and any significant issues or successes on previous large-scale federal IT engagements. Their ability to win and perform on contracts of this magnitude suggests a level of expertise and reliability valued by government clients.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for IT services in terms of cost efficiency and performance incentives?

The Cost Plus Award Fee (CPAF) contract type is designed to incentivize contractor performance by allowing for additional profit (award fee) based on meeting or exceeding specific performance objectives. This differs from fixed-price contracts, where the price is set regardless of performance, or cost-plus-incentive-fee (CPIF) contracts, which have more defined formulas for sharing cost savings or overruns. CPAF can be effective for complex projects where performance is hard to define precisely upfront, encouraging innovation and high-quality delivery. However, it also carries a risk of higher overall costs if performance objectives are not rigorously defined and monitored, as the government pays all allowable costs plus a fee that can be adjusted upwards. For IT services, CPAF is often used when the scope is evolving or when exceptional performance is critical.

What are the potential risks associated with a contract of this size and duration for IT portfolio management?

A contract of this magnitude ($90M+) and duration (over 4 years) for IT portfolio management carries several potential risks. Firstly, scope creep is a significant concern; as IT needs evolve, the project's scope may expand beyond initial estimates, leading to cost overruns and schedule delays if not managed effectively. Secondly, vendor lock-in could occur, making it difficult and costly to switch providers if performance degrades or needs change. Thirdly, there's a risk of technological obsolescence; the IT solutions and management approaches employed might become outdated over the contract's life, requiring costly updates or replacements. Finally, ensuring consistent high-quality performance and effective oversight over such a long period requires sustained agency commitment and resources to manage the contractor relationship and monitor outcomes.

How has federal spending on IT portfolio management services evolved, and where does this contract fit within that trend?

Federal spending on IT portfolio management services has generally trended upwards over the past decade, driven by the increasing complexity of government IT systems, the need for better data-driven decision-making, and mandates for IT modernization and cybersecurity. Agencies are increasingly recognizing the value of strategic portfolio management to optimize IT investments, reduce redundancies, and align technology with mission objectives. This $90M+ contract for CMS fits within this trend as a significant investment by a major agency to professionalize and enhance its IT management capabilities. It reflects a broader government-wide effort to improve IT governance and ensure taxpayer dollars are spent effectively on technology that supports critical services.

What is the significance of the 'Delivery Order' award type in the context of federal contracting?

A 'Delivery Order' award type typically signifies that this contract is a task order issued under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQ contracts establish terms and conditions for services over a period, but the specific quantities and delivery schedules are defined by individual delivery orders. This approach provides flexibility for the agency to procure services as needed, up to a certain ceiling amount. For this $90M+ contract, it means that while the overall IDIQ contract may have been competed, this specific delivery order represents a defined scope of work, value, and performance period awarded to TANTUS TECHNOLOGIES, INC. It allows CMS to procure specific IT management services efficiently without needing to re-compete the entire requirement each time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHJT2010002

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tantus Technologies Inc.

Address: 1735 N LYNN ST STE 650, ARLINGTON, VA, 22209

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $95,248,600

Exercised Options: $90,191,094

Current Obligation: $90,191,094

Actual Outlays: $4,237,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200098W

IDV Type: GWAC

Timeline